MANILA, Philippines - The Federation of Philippine Industries (FPI) has issued a warning against local government officials who are allowing ukay-ukay trade to continue in their areas of jurisdiction.
In an interview with reporters, FPI chairman Jesus L. Arranza said it is against the law to allow ukay-ukay and, as per Republic Act 4653, government officials who are allowing this business will be held liable.
Arranza identified Baguio City and Quezon City as ukay-ukay hot spots. He said the mayors are liable especially for establishments that have business permits. He said if ukay-ukay continues he will be forced to file charges using Baguio City and Quezon City as test cases. He said he may file charges against the mayors.
Aside from being illegal, Arranza said the ukay-ukay business is eating up the market of the local garments industry.
The country has banned second hand clothing from overseas because it may cause the spread of virus and illness. Arranza said even donating used clothing is illegal under the law. The only loophole is the special ecozones which are allowed to accept used clothing in their ports provided the merchandise is for re-export. Otherwise, used clothing should not be allowed inside the Philippines. This means that the used clothes sold here are mostly smuggled and undeclared.
Earlier, FPI said domestic manufacturers were alarmed by the pronouncement of Customs Commissioners Angelito Alvarez that he is espousing the legalization of ukay-ukay so the government can generate tax revenues from them.
FPI said Alvarez’ statements will just embolden the smugglers of ukay-ukay to continue bringing in used clothes for commercial use despite the expressed prohibition in laws. It will also further dissuade investments in the textile and garments industry that is now on the verge of collapse, FPI said.
Importation of used clothes for commercial purposes is expressly prohibited under RA 4653. The law states that “it shall be unlawful for any person, association or corporation to introduce into any point in the Philippines’ textile articles commonly known as used clothing and rags.” Therefore, Arranza said that even if the destination is a special economic zone, it is still prohibited because ecozones are still part and parcel of the Philippines and are only designated as non-customs territory.